ImmuneOnco Shifts Strategy, Terminates Two Clinical Programs Amid Industry Pressures

ImmuneOnco Biopharmaceuticals, a Shanghai-based biotech company, has announced a significant strategic shift in its pipeline development, terminating two clinical programs and abandoning plans for a manufacturing facility. This move comes just 18 months after the company's Hong Kong IPO, highlighting the increasing pressures faced by Chinese biotechs to prioritize their pipelines in a challenging industry landscape.

Pipeline Prioritization and Resource Reallocation

ImmuneOnco has strategically terminated the development of IMM2520, a CD47×PD-L1 bispecific antibody, and IMM47, an anti-CD24 antibody. The company cited "evolving industry dynamics" as the primary reason for this decision, emphasizing the need to optimize existing resources and focus on their most promising candidates.

The termination of IMM2520 is particularly notable, as it was previously designated as a key product by the company. The bispecific antibody, designed to simultaneously activate macrophages and T cells, had shown early promise in clinical trials. A study in China, which began in March 2023, had enrolled 26 solid tumor patients across six dose cohorts by the end of 2024, with one patient achieving a partial response.

Industry-wide Challenges in CD47 Programs

ImmuneOnco's decision to axe its CD47 bispecific program aligns with broader industry trends. CD47 programs at other biotechs have failed to meet expectations, with Gilead's $4.9 billion acquisition of Forty Seven being a high-profile example of disappointment in this target area. Despite this setback, ImmuneOnco maintains a strong interest in CD47, with a fusion protein and another bispecific targeting the "don't eat me" signal remaining in their pipeline.

Refocusing on Core Assets

With the termination of these programs, ImmuneOnco is reallocating resources to expedite the clinical development of its most promising candidates. The company has designated IMM01, a fusion protein designed to activate macrophages by blocking CD47 interaction, as its core product. ImmuneOnco initiated a phase 3 trial for IMM01 in chronic myelomonocytic leukemia late last year, demonstrating their commitment to advancing this asset.

This strategic realignment reflects ImmuneOnco's efforts to maximize its impact and effectively address patient needs in an increasingly competitive and resource-constrained biotech landscape. As Chinese biotechs continue to face pressures to streamline their pipelines, ImmuneOnco's decision may signal a broader trend of focused development strategies in the industry.